A fund that helps the state's largest utilities buy renewable energy at above-market rates won't last much longer, possibly providing the big power firms with a loophole to get out of looming renewable energy mandates. ...Meanwhile, utilities complain, the state's method of determining market rates sets the price benchmark artificially low. As a result, the utilities will run through the renewable kitty faster than expected, and in fact, could spend the whole amount, on just a few projects. The CPUC says the money will run out in the next 12 to 18 months.

A fund that helps the state's largest utilities buy renewable energy at above-market rates won't last much longer, possibly providing the big power firms with a loophole to get out of looming renewable energy mandates.

The state's three main investor-owned utilities, Pacific Gas & Electric, Southern California Edison and San Diego Gas & Electric, get $770 million over eight years between them to purchase renewable energy at above-market rates to help them meet state mandates.

The mandates, established in 2002, require that 20 percent of power comes from renewable sources by 2010. Because demand for renewable energy is increasing, its price is going up, doubling between 2002 and 2007.

Meanwhile, utilities complain, the state's method of determining market rates sets the price benchmark artificially low. As a result, the utilities will run through the renewable kitty faster than expected, and in fact, could spend the whole amount, on just a few projects. The CPUC says the money will run out in the next 12 to 18 months.

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